1. General information

1.1 General basis for preparation of sustainability statements (BP-1)

The sustainability statement for 2024 was prepared on a consolidated basis and comprises all fully consolidated Group companies of the UNIQA Group. The scope of consolidation is therefore the same as for the consolidated financial statements.

When assessing the materiality of and managing impacts, risks and opportunities, UNIQA examines its own business operations as well as the entire upstream and downstream value chain. Issues identified in the upstream value chain primarily pertain to suppliers for UNIQA’s operations. The most important aspects related to sustainability issues in the downstream value chain are in the area of the investment portfolio (own investments and investments of third-party funds) and that of the insurance customers.

1.2 Disclosures in relation to specific circumstances (BP-2)

1.2.1 Time horizons

In deviation from the time horizons proposed in ESRS 1 section 6.4, UNIQA has adopted the following time intervals for sustainability reporting:

• Short-term time horizon: one year
• Medium-term time horizon: from the end of the short-term reporting period up to ten years
• Long-term time horizon: more than ten years

In contrast to ESRS, the time horizons were selected in order to reflect the long-term orientation of the insurance business and the terms of the insurance contracts.

1.2.2 Value chain estimates, sources of estimation and outcome uncertainty

Due to the limited available information and data on the upstream and downstream value chain, estimates need to be employed for individual topics and data points. However, the use of estimates can lead to differences relative to the actual data. For UNIQA, improving the quality of data on an ongoing basis is a matter of great importance. Data from players in the upstream and downstream value chain is supplemented by data from external providers where necessary.

Further details on estimates, sources of estimation and outcome uncertainty can be found in the description of the corresponding metric.

1.2.2.1 Science Based Targets initiative (SBTi) targets & target progress

The emission factor applied to calculate the financed emissions for the “Project finance for electricity generation” asset class is based on average figures for the respective energy sources. Data regarding emissions and energy produced are based on projected values from the project operators, who estimate them using their own methods.

1.2.2.2 Weighted average carbon intensity (WACI) of the investment portfolio

Data on Scope 1 and Scope 2 emissions used to calculate the emissions intensity metric are provided by the external data provider Institutional Shareholder Services Inc. (ISS), and are largely based on data reported by the respective emitters. ISS and the Swiss Federal Institute of Technology have developed their own methodology for estimating emissions data not reported directly by entities. As a first step, non-reporting entities are compared with similar entities in the same sub-sector which serve as benchmarks on the basis of an industry classification system based on their emissions profile. In a second step, a statistical regression analysis is carried out on the basis of the sub-sectors in order to determine various financial indicators which provide estimates for the emissions data. To improve the forecasting reliability of the models, ISS compares newly reported data with previously estimated data through back testing. If significant deviations are identified, ISS recalculates the regression models to continuously improve the results and models.

In order to ensure that the data received applies to the UNIQA portfolio, the ESG team from capital investment assesses the plausibility of the data.

1.2.2.3 Financed emissions (investments in companies)

Financed Scope 1 and Scope 2 emissions from investments in listed companies, corporate bonds (excluding debt securities) and corporate loans are also sourced from ISS and are largely based on reported data from the respective issuers. Data on Scope 1 and Scope 2 emissions that does not constitute reported data is estimated by ISS with the application of its own models, taking into account sub-sector and activity levels. Data coverage came to 82 per cent in 2024. Data for financed Scope 3 emissions is also based on ISS data. ISS uses its own models to model financed Scope 3 emissions, applying sector-specific criteria across the supply chains of emitters. A sector-specific life cycle assessment is also performed to model Scope 3 emissions stemming from the use phase of the emitter’s product or service.

UNIQA validates the data received to check that it applies to the UNIQA portfolio. The annual percentage change in the metrics for each emitter is determined based on ISS data as part of the plausibility checks for the most important ESG metrics. Statistical models that employ normal distributions and Z-values are used to identify outliers.

The values of these outliers are compared against the values from the ISS online platform and reports produced by the undertaking in question.

In the event of deviations, UNIQA contacts ISS to investigate the deviations. If ISS’s reasoning behind deviations is not deemed satisfactory, the ESG team from capital investment decides whether the data is applicable and may amend it manually.

1.2.2.4 Financed emissions (government bonds)

Financed Scope 1 emissions from investments in government bonds are calculated using the Partnership for Carbon Accounting Financials (PCAF) methodology from the UNFCCC (United Nations Climate Framework Convention) database and cover 99 per cent of direct investments in government bonds. Emissions data from countries that do not update their data on an annual basis are estimated using climate-relevant data from research institutes, government agencies and international organisations.

Emissions data on Scope 2 and Scope 3 emissions is sourced from the Organisation for Economic Co-operation and Development (OECD), which collects data on greenhouse gas (GHG) emissions produced by international trade. Sixty-four countries have reported GHG emissions data on this basis. The OECD allocates 137 countries to the “Rest of the World” category. ISS attributes the GHG emissions from this collective category to individual countries by employing macroeconomic indicators.

1.2.2.5 GHG emissions from leased real estate (downstream)

GHG emissions resulting from the energy consumption of leased real estate (common areas and lettable areas) are calculated using a secondary data model. Consumption is estimated based on the characteristics of the real estate in question, including size, construction year and usage, with the use of country-specific averages.

1.2.2.6 Insurance-associated GHG emissions (corporate customers)

Insurance-associated emissions accrued in relation to the corporate customer business are calculated for the property, technology and liability insurance business lines and cover 96 per cent of the relevant premiums. The emissions are calculated in accordance with PCAF Option 1 and Option 3. Emissions from the remaining 4 per cent of premiums are extrapolated.

1.2.2.7 Insurance-associated GHG emissions (retail customer motor vehicle business)

At present, it is not possible to definitively calculate the total insurance-associated emissions from the UNIQA portfolio owing to the dependence on vehicle-specific data such as brand, model, annual mileage and CO₂ emissions. As some of this information is unavailable, UNIQA uses averages from secondary sources. Country-specific emissions are calculated based on the PCAF standard to obtain an overview of the portfolio that is as precise as possible.

Along with the use of estimates based on insufficient information from the value chain, uncertainties may also arise from measurement uncertainties within UNIQA’s own operations. The following metrics are particularly affected by this approach:

1.2.2.8 Energy consumption and GHG emissions from owner-occupied properties

The consumption data required to determine the energy consumption and GHG emissions can be collected for the financial year only for a portion of the properties occupied by UNIQA. For other owner-occupied properties, the reported figures are made up of consumption data for the financial year, supplemented by estimates based on historical data. In certain cases, annual consumption is determined entirely on the basis of historical data. A secondary data calculation is used where no measured historical data is available. In this scenario, consumption is calculated on the basis of the floor space of the properties, using averages that take into account the year of construction, the type of property, the location of the property, and the type of air conditioning and heating system. This affects roughly about 30 per cent of owner-occupied properties (based on floor space).

1.2.2.9 GHG emissions from vehicles used for company purposes

Consumption data for roughly 92 per cent of the vehicles used for company purposes was calculated on the basis of primary data. Kilometres driven are calculated on the basis of primary data for roughly 63 per cent of the vehicles. For the remaining vehicles, the base data was calculated on the basis of averages due to a lack of information, or incomplete and/or implausible data. The website spritmonitor.de applies averages to estimate consumption data in consideration of the vehicle type, age and propulsion type. The average mileage of the kilometres calculated on the basis of primary data was used to determine the kilometres driven.

1.2.3 The role of the administrative, management, and supervisory bodies (GOV-1) and information provided to, and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies (GOV-2)

UNIQA is governed by the Management Board; the Supervisory Board and its committees are responsible for overseeing the management of the company.

The Supervisory Board is comprised of ten shareholder representatives and five employee representatives. All members of the Supervisory Board elected during the Annual General Meeting have declared their independence under Rule 53 of the Austrian Code of Corporate Governance (ÖCGK). Both Anna Maria D’Hulster and Jutta Kath additionally meet the criteria under Rule 54 of the Austrian Code of Corporate Governance, as they are neither shareholders with a stake of more than 10 per cent nor do they represent the interests of such shareholders.

In one of its guidelines, UNIQA has set the requirements for the professional qualification (“Fit”) and personal reliability (“Proper”) of the individuals in charge of managing the company or who hold other key functions. The aim of these requirements is to ensure that these individuals remain professionally qualified and personally reliable on the basis of a rules-based procedure. The principle of collective professional qualifications applies in this regard. Both the Management Board and the Supervisory Board have many years of experience in the international insurance business as well as in the banking and information technology sectors at their disposal.

Impacts, risks, and opportunities are monitored on an ongoing basis by the Group ESG Committee, which is made up of four members of the Management Board and the heads of Corporate Business, Retail Business, Legal & Compliance and the Group ESG Office. The Group ESG Committee meets on a quarterly basis and is responsible for the integration of ESG matters into UNIQA’s core business. Its most important tasks include the following:

• Strategic definition and continuous development of Group-wide ESG ambitions
• Ongoing monitoring of stakeholders’ awareness of environmental and social impacts along with setting the topics to be addressed as focal points in communications with stakeholders
• Adoption of materiality assessment and discussion of material impacts, risks, and opportunities
• ESG target setting and KPI monitoring with regard to material impacts, risks and opportunities
• Supervision of the Group-wide climate strategy and environmental management along with material impacts, risks and opportunities

The Group ESG Office is responsible for coordinating sustainability agendas and reports to the member of the Management Board responsible for People, Brand, Sustainability and Personal Insurance & Asset Management, who also chairs the Group ESG Committee.

Group Finance prepares the notes to the consolidated financial statements along with the Group Management Report and ensures that non-financial disclosures are consistent with the financial disclosures. Group Finance reports to the member of the Management Board responsible for Finance and Risk Management.

ESG experts tasked with the operational and specialist development and implementation of content and measures have been appointed at the Group companies. In 2023, strategic ESG coordinators were integrated into the local organisational structure and governance in all countries and regions in which the UNIQA Group operates.

The Group ESG Committee reports to the Management Board on impacts, risks and opportunities on a quarterly basis. The Management Board receives quarterly reports from the Group ESG Office with updates on the progress of the sustainability strategy, the status of ongoing projects and the climate strategy in order to ensure effective monitoring and oversight. The Management Board also reports to the Supervisory Board on a quarterly basis on progress with respect to material impacts, risks and opportunities, and corresponding targets. The Management Board currently does not take any systematic analyses or assessments of impacts, risks, and opportunities (IROs) into consideration when reviewing and making decisions on material transactions. The Supervisory Board defines the sustainability strategy to be pursued each year and reviews the sustainability strategy in the advisory body of the Audit Committee.

In the financial year, the Group ESG Committee focused on the impacts, risks and opportunities related to climate change mitigation and adaptation with regard to underwriting, investments and own operations. The materiality assessment was also discussed, and the resulting material impacts, risks and opportunities presented and resolved.

With the support of the Group ESG Office, the specialist departments set targets with respect to material impacts, risks and opportunities. The targets are subject to approval by the member of the Management Board responsible for the department in question, by the Group ESG Committee and, if necessary, by the Management Board. The Group ESG Office grants technical approval and ensures the targets are aligned with Group targets. Progress on target achievement is analysed and interpreted by the specialist departments with the supervision of the Group ESG Office and reported to the Group ESG Committee and the Management Board.

The Management Board has relevant expertise on the climate and sustainability. One member of the Management Board has completed post-graduate studies on the topic of environmental management. The Supervisory Board attends training sessions each year in order to adapt to the ongoing changes in relation to sustainability. The training sessions cover current topics related to risk management and the regulatory environment, with particular attention paid to impacts, risks and opportunities specific to UNIQA.

1.2.4 Integration of sustainability-related performance in incentive schemes (GOV-3)

The percentage of remuneration granted to members of the Management Board associated with climate-related considerations came to 18.1 per cent in 2024.

No performance-related remuneration components are included in the remuneration granted to members of the Supervisory Board.

As of July 2024, the share of short-term variable remuneration in annual fixed income is 65 per cent. A certain percentage of the variable remuneration granted by UNIQA is linked to the achievement of sustainability-related targets. The goals and the targets set depend on the type of programme (short-term or long-term variable remuneration component) and on the target group, as outlined in the table below:

Pursuant to Section 78b(1) of the Stock Corporation Act, the remuneration policy for the Management Board is drawn up by the Supervisory Board, reviewed on an annual basis and submitted to a vote at the Annual General Meeting every four years or in the event of a material change. The current remuneration policy was drawn up by the Supervisory Board on 10 April 2024 and approved at the Annual General Meeting held on 3 June 2024. The remuneration of other managers is governed by the Remuneration Policy. The Remuneration Policy for UNIQA is subject to approval by the Group Remuneration Committee.

1.2.5 Statement on due diligence (GOV-4)

The core elements of due diligence are outlined in the following sections:

1.2.6 Risk management and internal controls over sustainability reporting (GOV-5)

As part of the expanded sustainability reporting, material risks related to sustainability reporting were identified in the financial year on the basis of the internal control system established for financial reporting. The completeness and correctness as well as the consistency of the data and disclosures included in the sustainability reporting were identified as material issues. A CSRD Reporting Manual and standardised templates for the collection of quantitative data ensure that definitions and methods for sourcing reporting information are consistent across the Group. Plausibility and completeness checks were established at the level of the Group companies as well as at the Group level to verify the quantitative disclosures. Standardised checklists are used to check that the report complies with ESRS disclosure requirements. These checklists are used by the Group ESG Office and Group Finance as part of their joint supervision of the report.

The risk heat map, which also incorporates risks related to the sustainability reporting, is reported on a quarterly basis to the CFRO, the Risk Committee and the Supervisory Board. The associated reporting identifies, assesses and visualises material sustainability risks to allow their potential impacts to be presented with transparency. The heat map takes into account both regulatory risks as well as operational, strategic and reputation-related risks that may arise from sustainability reporting. This systematic overview facilitates informed decision-making at the top management level and ensures that appropriate risk mitigation measures can be initiated in a timely manner.

1.3 Strategy, business model and value chain (SBM-1)

UNIQA offers insurance products for property and casualty insurance, health insurance and life insurance along with other services in Austria and in Central and Eastern Europe. Customers include both retail and corporate customers, who receive support across all sales channels from salaried field staff, general agencies, brokers, bank sales and direct sales. Alongside Austria, UNIQA’s main markets are Poland, Czechia and Slovakia.

In addition to the insurance business, UNIQA is an active player in the Austrian healthcare market with the PremiQaMed Group, which provides inpatient and outpatient care for customers.

The breakdown of the number of employees by country in which UNIQA operates is as follows:

The sustainability strategy is based on five key pillars:

Investment policy based on ESG criteria

Investments constitute an integral part of the activities of UNIQA. The assessment of environmental and social impacts on the assets of UNIQA on an ongoing basis (“outside-in”) as well as the assessment of the ecological and social impact of the UNIQA investments (“inside-out”) are incorporated into the structure and management of the UNIQA portfolio. The latter point also includes indirect CO₂ emissions. Calculated on the basis of transparent and standardised data and corresponding databases. UNIQA is a member of prestigious networks such as the Principles for Responsible Investments (PRI) led by the UNEP Finance Initiative and the UN Global Compact, the Net-Zero Asset Owner Alliance (NZAOA), and Climate Action 100+, which support the company’s commitment to greater sustainability in investment. The climate targets for the investment portfolio are based on the 1.5°C limit pathway agreed at the Paris Climate Conference and have been successfully validated as interim climate targets by the Science Based Targets initiative (SBTi).

Product policy aligned with ESG criteria featuring sustainable additional benefits

Environmental and social impacts are being integrated into the advisory approach at an increasing rate in order to improve both risk prevention and risk mitigation. Inclusion of these impacts has also necessitated certain product updates. One target in this regard is to offer additional investment opportunities in the life insurance business, with a particular focus on sustainability-orientated products in relation to unit-linked insurance products. Another target is to gradually expand the range of health and property insurance products to promote a sustainable lifestyle and sustainable corporate governance on a broad basis. Supplementary product modules as well as improved consulting quality will also contribute to resource efficiency and bringing down emissions.

Focus on sustainable operational management

UNIQA’s sustainability efforts aim to inspire its customers to act in a more environmentally friendly and socially responsible way. Attention is paid to the application of international certifications and standards in all of the company’s activities including in its dealings with suppliers. UNIQA aims to set a good example, particularly with regard to climate targets, and to consistently implement its commitment to continuously reduce CO₂ emissions in its own operations. The climate targets for UNIQA’s own operations are based on the 1.5°C limit set in the Paris Agreement. The interim targets for 2030 have been validated by the SBTi.

Transparent reporting and ongoing independent ratings

UNIQA provides comprehensive, timely and transparent information on its targets and progress with their implementation. Alongside existing reporting processes, this also takes place on the basis of guidelines that arise from the company’s membership of ESG networks and its support for various initiatives. In addition to improving transparency with regard to reporting, a dialogue with ESG rating agencies is also actively sought. UNIQA strives to continuously improve its ESG ratings through additional ESG disclosures.

Committed stakeholder management for greater social and environmental responsibility

UNIQA’s management approach includes maintaining an ongoing dialogue with all key stakeholders and their representatives. The key partners in the stakeholder dialogue are as follows:

• Customers and their interest groups
• Representatives of the general public
• Employees
• Investors

The strategies, action plans and targets derived from the five cornerstones are described in more detail in the individual topical standards.

In addition to the five cornerstones, the employees and the corporate culture form the foundation of the UNIQA strategy. One of the focuses set by UNIQA in its strategy is interactions with its own workforce. ESG-orientated governance provides the framework for this.

The core business of UNIQA involves assuming the risks of retail and corporate customers and minimising them through effective risk pooling, pursuing the most profitable investments and distributing profit shares to investors. UNIQA’s main value creation lies in the development of insurance products, investments and providing related advice to customers.

In addition to the above primary activities, the value chain within the scope of UNIQA’s business activities also involves supporting activities. Related activities pertain to corporate governance, risk management, corporate infrastructure and facility management (operations), human resources (people), finance and accounting, procurement, marketing and IT services in particular. The key elements of the upstream value chain are the suppliers, in particular the asset management partners, as well as the creditors and shareholders. The downstream value chain consists of the sales partners, customers, and companies in which UNIQA invests.

One of the most important input factors for UNIQA’s value chain is the employees who take care of the business. By investing in their development, promoting diversity and introducing new working models, the company undertakes not only to improve the capability and performance of its employees, but also to contribute to a more sustainable and equitable future.

1.4 Interests and views of stakeholders (SBM-2)

According to the sustainability strategy, UNIQA’s key stakeholders are its employees, customers, investors and the general public. Nature is categorised as a silent stakeholder.

The approach to stakeholder engagement underscores UNIQA’s commitment to actively listening to and engaging with stakeholders. Their viewpoints, concerns and expectations are taken into account in an ongoing dialogue across a wide variety of platforms in order to promote sustainable development overall.

The insights gained from this continuous interaction are reflected in the respective specialist departments, as well as in the Group ESG Office and the Group ESG Committee, and are incorporated into the sustainability strategy, sustainability activities, sustainability reporting, the double materiality assessment as well as projects and (due diligence) processes.

Stakeholder perception of material sustainability issues aligns with the UNIQA Group’s priorities and the information presented in this report. Material concerns highlighted by stakeholders pertain to topics that are already incorporated into UNIQA’s strategic alignment and accounted for in internal considerations.

Interactions with various stakeholder groups take place through the following platforms:

The outcomes of the ongoing stakeholder dialogue led to strategy revisions in the financial year. For example, a retail sustainability strategy for Austria was developed for the retail business based on the results of the double materiality assessment, with climate change adaptation and inclusion taken into consideration along with other material topics. Human rights issues were more strongly integrated into processes, both in relation to UNIQA’s own operations as well as in the upstream and downstream value chain, including underwriting taxonomy processes and procurement processes.

The results of the involvement of stakeholders in the materiality assessment were presented to the Management Board and discussed as part of a standard report prepared by the Group ESG Office. Relevant interactions with stakeholders are reported to the Group ESG Committee and the Supervisory Board on an ad hoc basis.

1.5 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)

The double materiality assessment identified the topics through which UNIQA has material impacts on people, society or the environment as well as those that may result in material financial risks and opportunities for the company at present or in the future. In the absence of a sector standard for insurance, insurance-specific IROs and relevant information, such as insurance-associated emissions, have been integrated into the respective topic-specific chapters.

With regard to environmental matters, climate change was found to be a material topic. One reason behind this is the indirect, short, medium, and long-term impacts on the environment and society attributable to investment decisions and insurance benefits.

This categorisation also arises from the climate-related transition risks and physical risks in the insurance business and investments, which could have a greater impact on UNIQA’s financial position and performance moving forward. Decarbonisation strategies adopted to date set forth concrete procedures for limiting and ultimately completely withdrawing from contractual relationships concluded with insurance customers that operate in fossil fuel sectors, along with investments in these sectors.

UNIQA views climate change as an opportunity to assist its insurance customers with the transition to a net-zero emissions economy, to adapt to climate change impacts and to develop new business lines with corresponding insurance and consulting services. Anticipated financial impacts could materialise in a reduction in the number of claims related to climate change and in a rise in premium revenues due to the expanded insurance offering.

UNIQA’s own operational management results in several direct short- and long-term material impacts with regard to climate change, particularly due to the energy consumption of its own buildings and vehicles. UNIQA counteracts these impacts by gradually decarbonising its vehicle fleet and heating systems, and by switching to electricity produced from renewable energy sources where feasible.

In addition, UNIQA’s buildings are exposed to short-term physical climate risks that may intensify in the future. Any resulting damage would financially impact UNIQA.

The aspects of pollution, water and marine resources, biodiversity and circular economy were not classified as material.

As an employer of more than 16,000 employees, UNIQA is affected by numerous key sustainability issues with regard to its own workforce, most of which have short-term effects, such as training or diversity.

In addition, certain issues including sales force training, the loss of key personnel and lack of attractiveness for key personnel may have a long-term impact on UNIQA’s financial situation.

UNIQA acknowledges these actual and potential impacts, risks and opportunities, and has developed several strategies and measures to mitigate, pursue or promote them in a targeted manner. These strategies and measures can be roughly broken down into five main pillars:

• Employee experience
• Leadership & learning
• Corporate culture
• Diversity and inclusion
• Data & analytics

In anticipation of the associated requirements of the Corporate Sustainability Due Diligence Directive (CSDDD), the related topical standard “Workers in the value chain” and related topic “Management of relationships with suppliers” (excl. payment practices) were assessed as material with regard to suppliers. The selection of suppliers results in indirect, short- and long-term impacts on the working conditions of their workforce. Targeted measures have already been introduced with the establishment of an onboarding process involving human rights surveys and the Code of Conduct.

Furthermore, the associated standard “Workers in the value chain” was also assessed as material in the downstream value chain of the corporate business on the basis of quantitative analyses and regulatory requirements (minimum social safeguards in the EU taxonomy). This was reflected in the consideration of social aspects in the corporate underwriting strategy as well as the tightening of processes and documentation regarding minimum social safeguards under the EU Taxonomy Regulation.

As a result of the product range offered to retail customers along with the associated consulting, material short- and long-term impacts, risks and opportunities exist with regard to the environment and/or retail customers in relation to the sustainability topics “Climate change”, “Information-related impacts on consumers and/or end-users” and “Social inclusion of consumers and/or end-users”.

The retail sustainability strategy for Austria lays down priorities on the topic of climate change mitigation and social inclusion. Over the next few years, concrete measures for the achievement of these strategic targets will be defined.

As an insurance company, UNIQA handles sensitive personal data. Data protection and cybersecurity are therefore sustainability matters that may potentially have material impacts on insurance customers. A data protection management standard governs the allocations of tasks, including the allocation of certain data protection tasks and responsibilities to various organisational units.

With the exception of animal welfare, sustainability matters related to business conduct were deemed essential to UNIQA’s own operations. The materiality of these matters primarily concerns short-term impacts in relation to preventing money laundering and corruption, political influence and protecting whistleblowers. These impacts are consistently countered by nurturing the corporate culture, through internal regulations on anti-corruption, whistleblowing and political influence as well as through mandatory training for all employees and the Management Board.

Details on the resilience of the business model and UNIQA locations with regard to impacts, risks and opportunities arising from climate change can be found in the disclosures on ESRS E1. Business continuity plans are drawn up at Group level to ensure that business operations are resilient to staffing gaps. Quarterly employee surveys are performed to track employee satisfaction in order to monitor the social resilience of the business.

Processes and systems for recording and reporting the financial impacts of sustainability matters, especially risks and opportunities, are currently being established.

1.6 Impacts, risks and opportunities management

1.6.1 Disclosures on the materiality assessment process

1.6.1.1 Description of the process to identify and assess material impacts, risks and opportunities (IRO-1)

1.6.1.1.1 Double materiality assessment process

As a first step, the basis of consolidation for the sustainability reporting, all associated business activities and the regions in which they are conducted as well as the stakeholders and business partners involved in these activities were identified. This information was then used to determine the areas in which UNIQA can have an impact or can expect impacts in terms of sustainability.

Business activities have been aggregated into value creation activities that result in similar impacts, risks and opportunities with respect to sustainability matters. These activities encompass the insurance business, investments, UNIQA’s own operations, employees, compliance and healthcare.

Topics and sub-topics under ESRS 1 AR 16 provided the basis for the double materiality assessment. These sustainability topics were analysed against the results of the materiality assessment previously conducted on the basis of GRI Standards and compared with topics from established memberships and ESG ratings in order to identify any additional, entity-specific topics. Peer group comparisons were also carried out on the basis of publicly available information on comparable companies. Based on the insights gained from these steps, a list of sustainability topics was drawn up for the detailed analysis of possible impacts, risks and opportunities.

Following on from these analyses, impacts, financial risks and opportunities for each group of economic activities were screened with regard to all sustainability topics with the involvement of internal experts from the relevant departments, and a materiality assessment was carried out using the methodology described in the following paragraphs.

Compliance was responsible for determining the impacts, risks and opportunities in relation to business conduct.

The preliminary results of the double materiality assessment were discussed with stakeholders and the Management Board in order to ensure that the findings determined on a quantitative basis are consistent with the internal and external assessment. Consensus was reached within the Group ESG Committee on the results, and they were subsequently approved by the Management Board.

1.6.1.1.2 Methodology

The methodology applied was based on ESRS 1 chapter 3, “Double materiality as the basis for sustainability disclosures”, supplemented by guidelines issued by the European Financial Reporting Advisory Group (EFRAG).

The materiality assessment was primarily conducted on the basis of estimations made by internal experts from the specialist departments and stakeholders in workshops supplemented by analyses of publicly available data, in particular data on investments and insurance customers. Sources consulted included approximations of the environmental and, in particular, biodiversity impacts of sectors published in the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) database, UNEP-FI data and ESG scores from Swiss Re and the ESG database of ISS.

Materiality assessment of impacts

The materiality assessment of the impacts is based on the following criteria:

• Scale
• Scope
• Remediability in the case of negative impacts
• Likelihood in the case of potential impacts

For each positive or negative impact identified, a quantitative classification took place for each of the aforementioned criteria on a five-level scale with a qualitative justification, followed by the calculation of a value combining scale, scope, remediability, if any, and likelihood of occurrence, if any, to determine the material impacts. A separate impact analysis was conducted for up to three different time horizons (short, medium and long term). Once 53.33 per cent of the maximum possible points are reached, an impact is considered material.

UNIQA identifies and measures impacts on climate change by calculating and managing GHG emissions arising from its own operational management (buildings, vehicles) and from key parts of the value chain. The methods employed are based on international standards such as the Greenhouse Gas Protocol (GHG) and the Partnership for Carbon Accounting Financials (PCAF).

A hot-spot analysis was performed to assess the GHG emissions in the value chain, with estimates made for all 15 Scope 3 categories to identify the most material categories. Materiality in this context is determined by the respective level of GHG emissions.

Neither the prioritisation of negative impacts nor prioritisation based on other characteristics take place. The material impacts are integrated into the general risk management process.

Materiality assessment of risks and opportunities

The materiality assessment of the impacts is based on the following criteria:

• Magnitude
• Likelihood

The likelihood of occurrence is determined using a five-stage scale (0 to 25 per cent, between 25 and 50 per cent, between 50 and 75 per cent, between 75 and less than 100 per cent, 100 per cent) and the scale is assessed using a three-level assessment scale (less than € 5 million, between € 5 and € 15 million, more than € 15 million) derived from existing risk management systems. For positive impacts that have been identified, an assessment is conducted to determine whether risks and opportunities may also arise. Any identified potential risks and opportunities are then included in the materiality assessment.

The materiality of risks and opportunities was determined using the following matrix, with the area marked in dark red indicating materiality:

Risks and opportunities are currently not prioritised on the basis of their source. Risks and opportunities arising from sustainability issues are therefore not prioritised over others, but are integrated into the general risk management process. In the future, opportunities management will be part of a collaborative strategic process between the respective specialist departments and the Group ESG Office.

UNIQA analyses physical and transition climate risks for both the investment portfolio and the corporate underwriting portfolio on the basis of several scenarios.

The qualitative aspects of climate-related opportunities were reviewed as part of the materiality assessment.

1.6.2 Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3) and description of the processes to identify and assess climate-related material impacts, risks and opportunities (IRO-1)

In previous years and in the financial year, the ongoing development of long-term climate scenarios was a main topic in climate risk analysis. A quantitative, group-wide approach was developed that is methodologically consistent with climate-related assumptions in other reports. Both physical risks (risk of natural disaster, physical risk exposure of the companies in which UNIQA invests) and transition risks (climate-related assets) to which the portfolio is exposed were analysed.

In addition, sustainability risks and their potential causes in the operational risk cycle were identified early on (internal control system and risk identification) through critical analyses of various departments and by increasing awareness of sustainability risks throughout the Group. The implementation of upcoming changes resulting from a review of the Solvency II quantitative reporting templates provided the starting point for the analysis. As a result of these changes, quantitative data on physical risks and transition risks was reported directly to the Austrian Financial Market Authority (FMA) and the European Insurance and Occupational Pensions Authority (EIOPA). The process for evaluating outsourcing risks throughout the Group was also improved and now explicitly takes the sustainability of our outsourcing partners into account. In the previous year, all relevant ESG data was incorporated into the IT risk analysis software. It was therefore possible to monitor the ESG limit utilisation rates on a daily basis in the financial year.

The analysed risks for investments and underwriting can be broken down into physical risks and transition risks. Physical risks include floods, storms and hail events. The potential default risks for corporate bonds and equities arising from sector-specific risks are categorised as transition risks.

Resilience analysis

Climate change scenarios are included in risk management in order to assess and strengthen resilience to climate-related risks. This comprehensive analysis forms part of the Own Risk and Solvency Assessment (ORSA), which is conducted on an annual basis and involves the assessment of both investments and losses due to natural disasters from insurance contracts under various climate scenarios. UNIQA employs two scenarios to measure climate-related risks: the early action scenario and the no further action scenario. These two scenarios were selected because they represent the two most plausible and relevant extremes (high transition risks & low physical risks; low transition risks & high physical risks). The climate change resilience analysis covers the entire Group with a primary focus on the most important business segments and geographical regions. The analysis of flood and storm risks was prioritised in the climate scenarios. These hazards are geographically extensive, can last for several days and have high potential to cause significant human and economic losses. Hail risks were also analysed due to recent severe hailstorms, especially in Austria. No material physical or transition risks were excluded from the analysis.

Climate X Spectra conducted the analysis of physical risks for investment properties. Each physical risk analysed was assigned a probability of occurrence and degree of severity to represent potential physical and financial impacts. Owner-occupied properties owned by UNIQA were not included in this analysis.

Transition risks were analysed for government and corporate bonds, stocks and real estate. Each position in each asset class was assigned a credit risk on the basis of the economic sector and its transition risk. In addition, the term of each asset class was taken into account when weighting the financial impact of the transition risks.

Early action is based on ambitious climate policies being adopted from the outset, with the aim of limiting global warming to 1.6°C by 2050 and reducing it to 1.5°C by the end of the century. The latest Network for Greening the Financial System (NGFS) “Net Zero 2050” scenario is applied. The macroeconomic assumptions entail an immediate increase in interest rates driven by inflation related to CO₂ prices. This will lead to initial impairment losses, but to a substantial rebound due to the market adjustment prior to 2050. By contrast, the no further action scenario assumes that current policies will continue without additional measures, leading to warming of 2.5°C by 2050 and a temperature rise of 3°C by the end of the century. This scenario is based on the NGFS “Current Policy” scenarios and shows a delayed impact on the financial markets compared to the early action scenario with lower short-term losses but higher long-term physical risks due to the increased occurrence of natural disasters. The resilience analysis for the real estate portfolio was conducted on the basis of climate scenario RCP8.5 (Representative Concentration Pathway 8.5). The worst-case scenario assumes a 3 to 5°C rise in global temperatures. The real estate analysis examines the impact of physical risks between 2020 and 2100. The analysis of transition risks examines the individual positions of the asset classes covered by reference to their term, which differs from the time horizons defined in ESRS 2. The analysis defines a short term as being to the end of 2025, a medium term to 2027, and a long term from 2028 onwards.

The resilience analysis reveals that the early action scenario, characterised by ambitious climate policies, initially leads to impairment due to higher interest rates and impairment of properties, followed by a substantial rebound by 2050. By contrast, the no further action scenario results in lower direct losses with increasing investments by 2050, but poses higher long-term physical risks due to the sharp increase in average annual losses from natural disasters by 2050 compared to the early action scenario. These findings underscore the need for proactive climate policies and increased flood control measures to mitigate future risks. In response, UNIQA plans to focus its strategy on diversifying investments, implementing effective risk mitigation measures and continuously monitoring climate-related risks to ensure long-term sustainability and resilience.

A climate risk analysis was carried out in the financial year to assess the risks to investment properties from environmental events. For the taxonomy-eligible properties examined, this analysis showed a financial risk of € 7.6 million.

The resilience analysis of transition risks revealed the following anticipated financial impacts for each asset class (reporting date 30 June 2024):

• Government and corporate bonds: approx. € 24.9 million (approx. 6 per cent of relevant exposure)
• Stocks: approx. € 0.1 million (approx. 20 per cent of relevant exposure)
• Properties: approx. € 40 million (approx. 2 per cent of the relevant exposure)

The resilience analysis is used to inform the Management Board by highlighting the need for proactive and flexible measures to mitigate climate-related risks. The early action scenario emphasises the importance of immediate and ambitious climate policies to limit long-term impacts. By contrast, the no further action scenario underscores the severe consequences of inaction, especially in terms of losses from natural disasters.

The in-house physical risk analysis focuses on two pre-defined scenarios released by NGFS and three material physical risks. In addition, all analyses carried out are subject to numerous assumptions and estimates with assumed probabilities of occurrence. Estimated results must therefore be interpreted accordingly. Due to the underlying uncertainties, the results of the physical risk resilience analysis were not integrated into the sustainability strategy.

With the help of the sustainability strategy and the targets and actions it sets forth, UNIQA is able to adapt investments to climate change in the short, medium, and long term. In the short and medium term, there is the risk that opportunity costs may arise as a result of limitations on fossil fuels and nuclear energy.

However, the incremental phase-out of fossil fuels permits a managed transition in order to adapt the portfolio to climate change. For example, the phase-out of crude oil by 2030 and natural gas by 2035 is pursued for direct investments in companies that generate more than 5 per cent of their revenue from the respective fossil fuels. No new direct investments have been made in companies that generate more than 5 per cent of their revenue from the coal business since the financial year.

With the validation of these science-based targets, UNIQA is committed to decarbonising the covered asset classes by 2027 or 2030. In line with the SBTi framework, the targets will also be renewed at five-year intervals according to current plans.

Sustainable investments contribute to the adaptation of investments to climate change with investments in projects such as green bonds and infrastructure projects focused on renewable energy. The current target entails achieving € 2 billion in sustainable investments by 2025. This was already achieved in the previous year.

1.6.3 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement (IRO-2)

As part of the materiality assessment process, the Group ESG Office examines the requirements of each disclosure requirement in detail and, together with the experts from the specialist departments, assesses in qualitative terms whether publishing individual disclosures substantially contributes to clarifying how UNIQA manages material impacts, risks and opportunities in connection with sustainability topics (impact, risk and opportunity management). By adopting this approach, UNIQA ensures that only stakeholder-relevant information is published, while at the same time providing a clear picture of the effectiveness of internal management and risk management systems in the field of sustainability.

Based on the double materiality assessment carried out, the following disclosure requirements have been identified as material:

Entities for which a separate sustainability report is not required

The following entities are covered by the consolidated sustainability report and therefore make use of the exemption pursuant to Art. 19(a)(9) or Art. 29(a)(8) of Directive 2023/34/EU to forgo the preparation of a separate sustainability report:

• UNIQA Asigurari S.A. (Romania, Bucharest)
• UNIQA osiguranje d.d. (Croatia, Zagreb)
• UNIQA Towarzystwo Ubezpieczeń S.A. (Poland, Warsaw)